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Category Archives for: Performance Stock Units

What’s keeping this executive up at night?
13 Feb

What’s keeping this executive up at night?

Arnav has had little time to ponder his family’s financial future while working on an enterprise-wide systems conversion for the last two years. His long-term incentives may be his greatest untapped asset but he has more questions than answers. What would happen to unvested nonqualified stock options if something should happen to him? And, how could he tap into his RSUs to help fund his extended family’s bi-annual trips to India? He needs a knowledgeable professional to develop a plan and a timeline for his equity compensation, along the lines of what he expects from his project managers at work.

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Too big to fail? Complexity of long-term incentive comp changes the picture
02 Jul

Too big to fail? Complexity of long-term incentive comp changes the picture

The annual election mix of NQOs vs RSUs was automatic until this year. Even the smartest guy in his class has to grudgingly admit that his portfolio is growing “too big to fail.” Victor has been picking stocks and making gains. Now his executive compensation is the largest position in his portfolio. Who’s looking after the company stock and what will he do about the annual election?

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When an 83(b) Election Converts a Windfall to Capital Gains
02 Jun

When an 83(b) Election Converts a Windfall to Capital Gains

The IPO of this San Jose sales manager’s technology company has provided a windfall he never thought possible. His equity compensation – a Restricted Stock Award -- has turned into serious money after the company’s IPO. William wisely made an 83(b) election at grant date and before the public offering. What financial decisions should he make now for the long run and what is he missing?

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PSUs and Insider Rules Confound Executive in New Role
31 Mar

PSUs and Insider Rules Confound Executive in New Role

When a rising star is named president for a west coast IT company, she acquires some new and enviable issues. Valeria is an insider, for starters, which means she’ll need to gain pre-clearance for any sale of company stock and is now required to file SEC Forms 3, 4 & 5. What’s more, she’s been granted Performance Stock Units (PSUs), whose features and performance targets are complex but achievable. One year in, she’s beginning to get attractive outside salary offers, so she wants to learn more about what she has.

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Accelerated Vesting Could Offset Uncertainty in a Merger
05 Dec

Accelerated Vesting Could Offset Uncertainty in a Merger

When company ownership is in play, all assumptions are on the table as to the company’s future and the executive’s own employment. Marcus wondered if his unvested Restricted Stock Units and Nonqualified Stock Options may provide an offsetting windfall for the long-tenured company executive.

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